NSW Treasurer Dominic Perrottet will announce an update of the state budget on Thursday.Credit:AAP
A drought-induced slump in rural exports,especially for cereal crops and textiles such as wool,will reduce the state’s economic growth by around a quarter of a percentage point in 2019-20.
This financial year's budget surplus will be $702 million,more than $300 million lower than the $1.016 billion that was forecast six months ago.
It will be the lowest budget surplus in NSW since 2012-13 when the state registered a deficit of $1.7 billion.
This year's surplus has been scaled down because of lower forecast GST and other revenues,along with increased expenditure commitments including on drought relief.
“The drought and the ongoing bushfire crisis are having an impact on the bottom line and we are forecasting a lower surplus in 2019-20,” Mr Perrottet said.
Since June the government has allocated an additional $208 million over five years to support drought-affected communities. This includes $166 million to help secure water supplies in regional NSW and $36 million to continue drought transport subsidy payments.